RUBIS_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS 9

2017 consolidated financial statements and notes

The principal changes in scope were as follows:

Gross value

Depreciation

(in millions of euros)

Acquisition of the remaining 50% in Rubis Terminal Petrol (formerly Delta Rubis Petrol)

333.8

(132.1)

Acquisition of the Dinasa activities in Haiti Acquisition of the Galana activities in Madagascar

74.0 50.9

(18.6) (22.7)

TOTAL

458.7

(173.4)

4.2 GOODWILL

ACCOUNTING POLICIES Business combinations prior to January 1, 2010 Business combinations carried out prior to January 1, 2010 have been recognized according to IFRS 3 unrevised, applicable from that date. These combinations have not been restated, as revised IFRS 3 must be applied prospectively. On first consolidation of a wholly controlled company, the assets, liabilities and contingent liabilities have been valued at their fair value in accordance with IFRS requirements. Valuation discrepancies generated at that time have been recorded in the relevant asset and liability accounts, including the non-controlling interests’ share, rather than solely for the proportion of shares acquired. The difference between the acquisition cost and the acquirer’s share of the fair value of the identifiable net assets in the acquired company is recognized in goodwill if positive, and charged to income under “Other operating income and expenses” if negative (badwill). Business combinations subsequent to January 1, 2010 IFRS 3 revised and IAS 27 amendedmodified the accounting policies applicable to business combinations carried out after January 1, 2010. The main changes with an impact on the Group’s consolidated financial statements are: • recognition of direct acquisition costs in expenses; • revaluation at fair value through profit and loss of interests heldprior to the controlling interest, in the case of an acquisition via successive securities purchases; • the possibility of valuing non-controlling interests either at fair value or as a proportional share of identifiable net assets, on a case by case basis; • recognition at fair value of earn-out payments on the takeover date, with any potential adjustments being recognized in profit and loss if they take place beyond the assignment deadline; • adjustments of the price recorded on acquisitions made by the Group are recognized in cash flows from investing activities on the same basis as the initial price. In accordance with the acquisition method, on the date of takeover, the Group recognizes the identifiable assets acquired and liabilities assumed at fair value. It then has a maximum of 12 months with effect from the acquisition date to finalize recognition of the business combination in question. Beyond this deadline, adjustments of fair value of assets acquired and liabilities assumed are recognized directly in the income statement. Goodwill is determined as the difference between (i) the transferred counterpart (mainly the acquisition price and any earn-out payment excluding acquisition expenses) and the total non-controlling interests, and (ii) the fair value of assets acquired and liabilities assumed. When positive, this difference is recognized as an asset in the consolidated balance sheet or, when negative (badwill), under “Other operating income and expenses”. After the adoption of the revised IFRS 3, an option exists for the measurement of non-controlling interests as of the acquisition date: either at the fraction they represent of the net assets acquired (the partial goodwill method) or at fair value (the full goodwill method). The option is available on a case-by-case basis for each business combination. 2017 Registration Document I RUBIS 196